Ltd. with activity in the EU

Ltd. with activity in the EU

 

Question:
Hello!

I have EOOD and I am the sole owner of the capital of the company. I will operate in the EU. The income from the activity will go to the company account. I will live with my family wherever I work.

I was advised to insure myself as a working owner.

Are salary and insurance costs deductible?

Am I entitled to business trips?

Will the insurance be on the threshold of the profession?

Will I have equalization insurance for the year?

Thanks!

 

Answer:

Hello,

First of all, they have correctly guided you that it will be most profitable to insure yourself as a working owner. This means in practice that as an owner, you will be self-sufficient, but you will also do personal work. This allows you the following: you will be able to insure yourself on the minimum insurance income for the year with the relevant insurances and tax. Only the amount on which you are insured will be recognized as an expense of your company. The insurances themselves are not recognized as an expense. You are entitled to business trips, the amount of which depends on the country in which you will operate.

However, what we see as a problem in your case is the mention of the fact that in addition to you and your family will reside (or already resides) in the country. Once you work, live and your family lives (and maybe works) in this country, then your living center (work, family, residence) becomes this country and for tax purposes you and your company actually become a local person for this country. (not for Bulgaria). Which in turn leads to the fact that you become subject to both you as an individual and your company to the tax and social security legislation of this country. Of course, this is "if you get caught". But it is a considerable risk, and depending on the relevant legislation of the state, the consequences can be more than serious.

We hope we have been helpful.

Greetings!